US DoJ Cryptocurrency Seizure Disrupts Hamas Terrorist Financing Scheme

• Cryptocurrency valued at over $200,000 was seized by U.S. authorities.
• Hamas operatives coordinated their fundraising efforts via an encrypted group chat via over 15 crypto addresses.
• The FBI traced transactions linked to these addresses, discovering a money laundering scheme.

A significant terrorist financing system benefiting Harakat al-Muqawama al-Islamiyya (Hamas) was disrupted by the seizing of cryptocurrency valued at approximately $201,400 in a coordinated operation involving the U.S. Department of Justice (DOJ).

Court documents reveal Hamas operatives used an encrypted group chat to coordinate and expand their fundraising efforts. Supporters were provided with updated cryptocurrency addresses to ensure funds flowed continuously to Hamas. 

The FBI traced these transactions, uncovering the extensive laundering network that disguised the proceeds as legitimate. This intricate operation leveraged sophisticated blockchain investigative techniques to identify the movement of illicit funds.

The operation stemmed from intelligence tracking cryptocurrency addresses associated with Hamas fundraising efforts. According to DOJ officials, at least 17 cryptocurrency addresses were shared within an encrypted communication platform, enabling Hamas supporters worldwide to contribute to the terror group. 

The funds were then pooled in operational wallets and laundered through virtual currency exchanges and over-the-counter brokers. Since October 2024, over $1.5 million in virtual currency flowed through this system.

Cryptocurrency accounts registered in the names of individuals connected to Hamas, some of whom were based in Turkey, were seized during the operation.

The seized assets included cryptocurrency addresses containing approximately $89,900 and three additional accounts holding about $111,500. This decisive action stopped these funds from potentially fueling further terrorist activities.

The operation included efforts from multiple DOJ divisions, such as the FBI Counterterrorism and Cyber Divisions, in tandem with the FBI Albuquerque Field Office. 

While blockchain and cryptocurrencies offer transparency in some respects, they also provide anonymity that can be exploited for illegal purposes.